Minimum Order Quantities and Private Label Constraints
What are minimum order quantity (MOQ) requirements? 
  • Manufacturers will often have a required minimum order for private label products. 
  • Not all manufacturer’s require the same minimums. 
  • Don’t be afraid to ask for a referral if a manufacturer’s minimums are too high for your business. 
  • “Small” minimums mean different things to different manufacturers. Be clear about what you need. 
Why do manufacturers have minimum order quantity (MOQ) requirements? 
  • Minimums may be imposed by suppliers of the raw materials and packaging required for your project. 
  • Some manufacturers do not want to deal with small orders. 
  • Larger orders can often be processed in large batches yielding to efficiencies in scale, discounted raw materials and lower labor costs. 
  • If your project requires non-stock or high dollar components, the manufacturer wants to be certain they will not be stuck with leftover materials that cannot be resold to other clients. 
What are some minimum order constraints? 
  • How much material can you move in a month? 6 months? 12 months? 
  • Does your business have enough cash-flow to prepay for MOQ manufacturing when terms are unavailable? 
  • What is the shelf-life of the product? Perishable items cannot be stored indefinitely to satisfy future demand. 
  • Where will you store excess inventory? 
  • If your manufacturer offers onsite storage, what is the fee? 
  • How will you dispose of unsold product past its expiration date?

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